Filing information returns electronically with the IRS offers greater efficiency and accuracy compared to paper submissions. You need a TCC if you want to electronically file 10 or more information returns with the IRS. On January 1, 2024this provision came into force.
TCC Application IRS
The Transmitter Control Code (TCC) application is a process that allows tax professionals and businesses to electronically file information returns with the Internal Revenue Service (IRS) through the IRIS.
The Information Returns Intake System (IRIS) Application for TCC provides a smooth path to obtaining this essential code. When applying to more than one payer, the IRS advises transmitters to use the same TCC for each payer.
IRS TCC Application Process
Application processes are as follows:
Access:
- Visit the IRS website (https://www.irs.gov/tax-professionals/about-information-returns-ir-application-for-transmitter-control-code-tcc-for-filing-information-returns-electronically-fire) and navigate to the “IRIS Application for TCC” page.
Account Management:
- Create a new account or sign in using your existing IRS credentials.
- If you’re new, you’ll need to link your account with ID.me, a secure verification service.
Organization Selection:
- Choose whether you’re applying for an individual or a firm/organization.
Application Completion:
Carefully follow the prompts and provide accurate information, including:
- Legal name and Employer Identification Number (EIN) of the applicant.
- Business contact details and physical address.
- Business activities and specific information returns you plan to file (e.g., Form 1099-NEC).
- Software you’ll use for transmission (if applicable).
- Authorized users with their Social Security numbers/ITINs, roles, and contact information.
- Review and attest to the application’s accuracy.
Submission and Approval:
- Thoroughly review your application for an errors before submitting it electronically.
- The IRS typically processes applications within 45 days.
- You’ll receive email notifications regarding the application status and your assigned TCC (if approved).
Who needs TCC?
A TCC is necessary for any entity electronically filing information returns, such as Forms 1099, with the IRS through the Filing Information Returns Electronically (FIRE) system. Here’s a breakdown of those who require a TCC for electronic filing with the IRS:
Mandatory TCC Holders:
- Businesses and organizations:
- Issuers filing information returns only for themselves.
- Transmitters filing returns for others (e.g., third-party processors).
- Software developers create transmission software.
- Fiduciaries:
- Trustees, executors, and administrators file returns for estates and trusts.
- State and Federal agencies:
- Submitting information returns on behalf of taxpayers.
Optional TCC Holders:
- Individuals filing Form 1042-S (Foreign Income Tax Withheld at Source).
- You only need one TCC for multiple payers if you file under the same legal name and EIN/SSN.
- You don’t need a TCC if you’re filing information returns on paper.,
TCC Application IRS Updates and Deadlines
Recent updates and deadlines for the IRS TCC application process:
Legacy TCC Migration Completed:
- As of August 1, 2023, the migration of legacy Transmitter Control Codes (TCCs) issued before September 26, 2021, to the new IRIS system is complete. This means those old TCCs are no longer valid for electronic filing.
Filing Threshold Decreased:
- Effective January 1, 2024, the electronic filing threshold for information returns has been lowered to 10 or more returns.
- This means if you submit 10 or more information returns (such as Forms 1099), you are now required to file electronically and obtain a TCC.
Modernised e-File Implementation:
- The IRS is gradually implementing the Modernised e-File (MeF) system for information returns.
- While currently limited to specific forms and filers, this system will eventually replace the existing FIRE system and potentially impact the TCC application process in the future. Stay informed about upcoming changes on the IRS website.
Important Deadlines:
- No more deadline for migration: The deadline for migrating legacy TCCs to the IRIS system has already passed on August 1, 2023. If you had an older TCC, it’s no longer valid.
- File electronically if over 10 returns: As of January 1, 2024, filing electronically with a TCC is mandatory if you submit 10 or more information returns.
How long does it take to get a TCC?
The typical processing time for a TCC application with the IRS is 45 days. This period applies from the moment you submit your completed application through the IRIS platform.
However, it’s important to remember that several factors can influence the actual processing time:
- Completeness of application: Ensure you provide all required information accurately and thoroughly in your application. Incomplete applications may lead to delays while the IRS requests additional details.
- Application volume: During peak filing seasons, the IRS might experience higher application volume, potentially impacting processing times.
- Technical issues: Unexpected technical issues at the IRS or on your end could potentially affect the processing speed.
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